Online release: It’s film producers vs multiplexes

MUMBAI: The Indian film industry is headed towards a major face-off between two of its biggest stakeholders – film producers and multiplexes – after film executives started exploring the option of releasing films, due for a theatrical release, on video streaming services.

The cinema exhibitors have insisted that to-be-released films should not be made available to over-the-top (OTT) players. Multiple sources in the multiplex industry told ET that the exhibition players might take a hard stance of boycotting future releases from producers and actors, if they allow the films to be streamed before a theatrical release.

“It’s a matter of survival,” said a top executive of a multiplex chain on condition of anonymity. “We are not against smaller films, which are meant to be released directly on streaming services, or films commissioned by Netflix or other such services, to not have a theatrical window. But at a time when we are forced to cease operations, if producers and actors don’t support us, we will have to deliberate if we want to support them in the future.”

In a statement, the Multiplex Association of India (MAI) requested all its partners – studios, producers, actors and content creators – to support the cinema exhibition sector by releasing their films in the theatres after lockdown ends.

“We urge all studios, producers, artistes and other content creators, to kindly respect the exclusive theatrical window, which has been a time-tested industry practice, agreed upon by all stake-holders, not just in India, but even globally, for several decades,” the statement said.

Currently there is an eight-week window between a theatrical and other screen release in India.

However, producers are worried about mounting carrying costs on their investment, and piracy. “There is no certainty on when cinema screens will be allowed to operate again. Even after the lockdown is lifted, moviegoers might not want to visit cinema halls. We can’t just sit with a ready film till then, it costs us money every single day,” said a producer.

The Covid-19 pandemic has caused major disruption in the films business with both multiplex owners and producers losing money due to shut cinemas.

Cinema exhibition players have been rueing nil revenues since March and high recurring fixed costs.

Another producer said these are unprecedented times and no stakeholder is in a position to flex muscles. “A producer, sitting on a completed movie has no other way but to go to a video streaming service or a broadcaster. Everyone has to work together and I would have understood if it was business as usual, but it is not. Cinemas are not open right now so there is no point in them taking an adversarial stance right now,” he added.